7. Other Type
From TrueERP wiki
Other Type
Other Type - Do you understand how "Other" type product works?
Other type - A product that doesn't have a specific buying cost associated with it, but it is sold. It DOESN'T have Cost of Goods Sold, it IS NOT considered an Asset, but MAY attract Income.
These products are generally not purchased and track products for inventory only on the sales side. These load into a transaction, but you do not purchase.
A few examples are:
- It may be a service you provide. Sales of Other type products are posted to the income account as for Non-Inventory Asset products as above. If you do purchase an Other type product the cost is posted as a negative sale to the Income Account.
- Intangible - where customers are charged for service or freight charges.
